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PSC Rejects Changes To POR Discount Rates Filed To Resolve Under-recoveries Under An Assumed Dec. 31, 2024 End Date For POR
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The Maryland PSC has rejected, at three utilities, proposed modifications to the residential purchase of receivables discount rates that the utilities had filed to mitigate any forecast under-recovery due to the end of residential POR under an assumed December 31, 2024 end date
The PSC rejected POR discount rate changes at Baltimore Gas & Electric (both electric and gas), Pepco, and Delmarva. The current residential discounts at each of these utilities will remain in effect
Proposed discount rate changes from WGL and Potomac Edison were not addressed by the PSC today, but the PSC's reasoning is equally applicable at those utilities
The PSC rejected the residential POR discount rate changes in light of Staff's previously reported recommendation that residential POR continue, until an anticipated end date of June 1, 2026, for contracts executed or renewed prior to January 1, 2025, with such grandfathering providing the utilities with time to implement a post-POR form of utility consolidated billing (see details here). POR ends under SB1 for residential contracts entered into or renewed on or after January 1, 2025
The PSC has not yet set a "date certain" for the end of grandfathered residential POR. Once the PSC makes such determination of whether, and for how long, grandfathered residential POR will continue, the utilities were directed to file updated residential POR discount rates at such time (though the PSC's letter order was not explicit, presumably such discount rate updates will again be intended to reduce any under-recovery under residential POR prior to its end date)
The PSC, prior to Staff filing a recommendation on grandfathered POR, had previously directed the utilities to file any recommended changes to the residential POR discount for the remaining months of the POR program, which prompted the proposed updates from the utilities
Generally, at BGE and Pepco, the proposed discount rate changes would have increased the residential POR discount -- significantly in most cases (with some of the new proposed discounts being over 10%) -- though the amount of the increase would have depended on whether the PUC based the update on a forecast of under-recoveries through Dec. 31, 2024 (the previously assumed POR program end date), or May 2025 (with the May 2025 date used in order to allow the utilities' collections process to be completed, reflecting additional amounts forecast to become uncollectible between Dec. 2024 and May 2025)
The residential POR discounts that were under consideration and which were rejected, and the current POR discounts which will remain in effect, are below:
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September 25, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Maryland Residential POR Discount
Proposed Proposed
Current Dec 2024 May 2025
(Remains Forecast Forecast
In Effect) (Rejected) (Rejected)
BGE Electric 2.3921% 3.5421% 6.2451%
BGE Gas 3.3389% 9.1722% 12.0862%
Pepco 2.6710% 7.2548% 11.3314%
Delmarva 2.1739% 0.3398% 5.2262%
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